NPS account: PFRDA rolls out this facility from 1st October to optimize National Pension System returns — full detail inside

NPS account: In a bid to optimize National Pension System (NPS) returns with same day NAV, the Pension Fund Regulatory and Development Authority (PFRDA) has rolled out D Remit (Direct Remittance) facility from 1st October 2020 for voluntary NPS contributors.

NPS Subscribers under Government/Non Government/All Citizens Model would be able to deposit their voluntary contributions through net banking, by creating a Static Virtual ID linked to their PRANs. Photo: Pixabay

NPS account: In a bid to optimize National Pension System (NPS) returns with same day NAV, the Pension Fund Regulatory and Development Authority (PFRDA) has rolled out D Remit (Direct Remittance) facility from 1st October 2020 for voluntary NPS contributors. With this facility, the existing NPS Subscribers under Government/Non Government/All Citizens Model would be able to deposit their voluntary contributions through net banking, by creating a Static Virtual ID linked to their PRANs. The creation of a virtual identification number is a one time activity and can be obtained by visiting the eNPS link in the websites of respective Central Record Keeping Agency.

Informing about the benefit of this new facility of same day NAV remittance, the PFRDA said, "D-Remit not only eases the deposit of the voluntary contributions by the Subscribers, but would also optimize the investment returns by providing the same day NAV as the deposit of contribution, provided the contribution is made before 8.30 AM, on any bank working day other than Saturday, Sunday and public holidays. Further, D-Remit also gives the option to a Subscriber to set up Systematic Investment (through Auto Debit instructions in net banking) by which periodical and regular contributions can be made in his NPS account to reap the benefit of rupee cost averaging. The minimum amount of contribution through D Remit is Rs 500/- per transaction in both Tier 1 and Tier II accounts. The virtual Ids are unique for Tier I and Tier II."

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NPS subscribers who are intending to make their voluntary contributions through D-Remit would be required to access the CRA System and generate Virtual ID linked to their PRAN. Post authorization of Virtual ID, Subscribers can log-in to their Net Banking and add Virtual ID generated as above as a beneficiary, with IFSC code UTIB0CCH274, to transfer their voluntary contributions.

The cut off time for availing the benefit of same day NAV is modified to 08.30 AM pursuant to the revision of timelines for investment by Liquid Mutual Funds by SEBI due to COVID situation and shall be revised 09.30 AM post restoration of original time lines by SEBI.

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